Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2021 | Apr. 26, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | RR Donnelley & Sons Co | |
Entity Central Index Key | 0000029669 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 72.2 | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 1-4694 | |
Entity Tax Identification Number | 36-1004130 | |
Entity Address, Address Line One | 35 West Wacker Drive | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60601 | |
City Area Code | 312 | |
Local Phone Number | 326-8000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | RRD | |
Security Exchange Name | NYSE | |
Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Preferred Stock Purchase Rights | |
Security Exchange Name | NYSE | |
No Trading Symbol Flag | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 261.6 | $ 288.8 |
Receivables, less allowances for credit losses of $14.6 in 2021 (2020 - $15.9) | 927.4 | 1,009.2 |
Inventories (Note 4) | 300.8 | 302.1 |
Assets held-for-sale | 22.5 | 23.1 |
Prepaid expenses and other current assets | 126.7 | 133.4 |
Total current assets | 1,639 | 1,756.6 |
Property, plant and equipment-net (Note 5) | 429.9 | 438.8 |
Goodwill (Note 6) | 407.4 | 410.6 |
Other intangible assets-net (Note 6) | 64 | 68.8 |
Deferred income taxes | 78 | 78.5 |
Operating lease assets | 214.4 | 223.8 |
Other noncurrent assets | 147.7 | 153.8 |
Total assets | 2,980.4 | 3,130.9 |
LIABILITIES | ||
Accounts payable | 716.2 | 804.5 |
Accrued liabilities and other | 331.3 | 351.2 |
Short-term operating lease liabilities | 70 | 73.4 |
Short-term and current portion of long-term debt (Note 15) | 140.4 | 61.1 |
Total current liabilities | 1,257.9 | 1,290.2 |
Long-term debt (Note 15) | 1,362.7 | 1,442 |
Pension liabilities | 84.4 | 89.5 |
Other postretirement benefits plan liabilities | 53.7 | 55.8 |
Long-term income tax liability | 68.3 | 68.3 |
Long-term operating lease liabilities | 150.9 | 156.9 |
Other noncurrent liabilities | 256.9 | 272 |
Total liabilities | 3,234.8 | 3,374.7 |
Commitments and Contingencies (Note 14) | ||
RRD stockholders' equity | ||
Preferred stock, $1.00 par value Authorized: 2.0 shares; Issued: None | ||
Common stock, $0.01 par value Authorized: 165.0 shares; Issued: 89.0 shares in 2021 and 2020 | 0.9 | 0.9 |
Additional paid-in-capital | 3,105.4 | 3,263.6 |
Accumulated deficit | (2,242) | (2,240.7) |
Accumulated other comprehensive loss | (160.3) | (153.9) |
Treasury stock, at cost, 16.8 shares in 2021 (2020 - 17.6 shares) | (971.6) | (1,127.6) |
Total RRD stockholders' equity | (267.6) | (257.7) |
Noncontrolling interests | 13.2 | 13.9 |
Total equity | (254.4) | (243.8) |
Total liabilities and equity | $ 2,980.4 | $ 3,130.9 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowance for credit losses | $ 14.6 | $ 15.9 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, authorized | 2,000,000 | 2,000,000 |
Preferred stock, Issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, Authorized | 165,000,000 | 165,000,000 |
Common stock, Issued | 89,000,000 | 89,000,000 |
Treasury stock, shares | 16,800,000 | 17,600,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 1,173.1 | $ 1,216.9 |
Cost of sales | 949 | 968.6 |
Gross profit | 224.1 | 248.3 |
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 153.3 | 159.9 |
Restructuring, impairment and other expense -net (Note 7) | 5.8 | 11.2 |
Depreciation and amortization | 33.8 | 39.2 |
Other operating expense | 6.1 | 4.9 |
Income from operations | 25.1 | 33.1 |
Interest expense-net | 30.5 | 33.9 |
Investment and other income-net | (4.8) | (4) |
(Loss) income from continuing operations before income taxes | (0.6) | 3.2 |
Income tax expense (benefit) | 1.1 | (3.8) |
Net (loss) income from continuing operations | (1.7) | 7 |
Gain (loss) on sale of discontinued operations, net of tax | 0.6 | (5) |
Loss from discontinued operations, net of tax | (14.9) | |
Net income (loss) from discontinued operations (Note 2) | 0.6 | (19.9) |
Net loss | (1.1) | (12.9) |
Less: income attributable to noncontrolling interests | 0.2 | 0.1 |
Net loss attributable to RRD common stockholders | $ (1.3) | $ (13) |
Basic and diluted net (loss) earnings per share attributable to RRD common stockholders (Note 11): | ||
Continuing Operations | $ (0.03) | $ 0.10 |
Discontinued Operations | 0.01 | (0.28) |
Net loss attributable to RR Donnelley stockholders | $ (0.02) | $ (0.18) |
Weighted average number of common shares outstanding: | ||
Basic | 72.7 | 71.6 |
Diluted | 72.7 | 71.6 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME LOSS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (1.1) | $ (12.9) |
Other comprehensive (loss) income, net of tax (Note 12): | ||
Translation adjustments | (10.2) | (20) |
Adjustments for net periodic pension and postretirement benefits plan cost | 1.1 | 0.8 |
Changes in fair value of derivatives | 2.5 | (12) |
Other comprehensive loss | (6.6) | (31.2) |
Comprehensive loss | (7.7) | (44.1) |
Less: comprehensive loss attributable to non-controlling interests | (0.1) | |
Comprehensive loss attributable to RRD common stockholders | $ (7.7) | $ (44) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
OPERATING ACTIVITIES | ||
Net loss | $ (1.1) | $ (12.9) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Impairment charges and other-net | 0.1 | 20.6 |
Depreciation and amortization | 33.8 | 40.8 |
Provision for credit losses | (0.1) | 4.4 |
Share-based compensation | 0.2 | 1.4 |
Deferred income taxes | (0.5) | (1.8) |
Net pension and other postretirement benefits plan income | (4.6) | (3.4) |
(Gain) loss on disposition of businesses and other assets | (1.7) | 6.6 |
Other | 3.5 | 1.1 |
Changes in operating assets and liabilities: | ||
Accounts receivable-net | 75.8 | 62.7 |
Inventories | (0.4) | (4.1) |
Prepaid expenses and other current assets | (6.7) | (4.9) |
Accounts payable | (89.3) | (143.3) |
Current income taxes | (4.6) | (13.5) |
Accrued liabilities and other | (21.4) | (29.3) |
Pension and other postretirement benefits plan contributions | (1.9) | (4) |
Net cash used in operating activities | (18.9) | (79.6) |
INVESTING ACTIVITIES | ||
Capital expenditures | (13) | (17.7) |
Disposition of businesses | (0.8) | 12.9 |
Proceeds from sales of investments and other assets | 2.4 | 2.9 |
Proceeds related to company-owned life insurance | 0.1 | 1.6 |
Net cash used in investing activities | (11.3) | (0.3) |
FINANCING ACTIVITIES | ||
Payments of current maturities and long-term debt | (1.4) | (58.7) |
Proceeds from credit facility borrowings | 207 | 578 |
Payments on credit facility borrowings | (207) | (170) |
Dividends paid | (2.1) | |
Payments of withholding taxes on share-based compensation | (2.4) | (0.6) |
Other financing activities | (0.9) | (0.7) |
Net cash (used in) provided by financing activities | (4.7) | 345.9 |
Effect of exchange rate on cash, cash equivalents and restricted cash | (2.1) | (6) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (37) | 260 |
Cash, cash equivalents and restricted cash at beginning of year | 357.6 | 223.8 |
Cash, cash equivalents and restricted cash at end of period | $ 320.6 | 483.8 |
Supplemental cash flow disclosures: | ||
Operating cash flows used in discontinued operations | (1.4) | |
Investing cash flows used in discontinued operations | $ (0.1) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements include the accounts of R.R. Donnelley & Sons Company and its subsidiaries (“RRD,” the “Company,” “we,” “us,” and “our”) and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited condensed consolidated interim financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods and should be read in conjunction with the consolidated financial statements and the related notes thereto included in our latest Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 24, 2021. Operating results for the three months ended March 31, 2021 are not indicative of the results that may be expected for the fiscal year ending December 31, 2021. All significant intercompany transactions have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements include estimates and assumptions of management that affect the amounts reported in the condensed consolidated financial statements. Actual results could differ from these estimates. In 2020, to focus on our core product and service offerings, we completed our plan to exit our Logistics Business. This business included Print Logistics, which was disposed of on July 2, 2018; Courier Logistics, which was disposed of on March 2, 2020; DLS Worldwide, which was disposed of November 2, 2020; and International Logistics which was disposed of on November 3, 2020. These businesses were included in the Business Services segment and primarily provided logistics services to a broad range of clients in the United States and globally. The financial results of these businesses have been excluded from continuing operations and segment results for all periods presented unless otherwise noted. Refer to Note 2 –Discontinued Operations Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash at March 31, 2021 and December 31, 2020 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows. March 31, 2021 December 31, 2020 Cash and cash equivalents $ 261.6 $ 288.8 Restricted cash - current (a) 52.8 62.6 Restricted cash - noncurrent (b) 6.2 6.2 Total cash, cash equivalents and restricted cash $ 320.6 $ 357.6 (a) Included within Prepaid expenses and other current assets within the Condensed Consolidated Balance Sheets (b) Included within Other noncurrent assets within the Condensed Consolidated Balance Sheets Cash payments for income . Cash refunds for income taxes were $0.5 million and $2.4 million . Income taxes receivable of $19.6 million and $16.3 million as of March 31, 2021 and December 31, 2020, respectively, are included within Prepaid expenses and other current assets |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 2. Discontinued Operations In the fourth quarter of 2020, we completed our plan to exit our Logistics business, which was a component of the Business Services reporting segment. The Logistics business was comprised of DLS Worldwide, International Logistics, Print Logistics and Courier Logistics. On November 2, 2020, we sold DLS Worldwide for $225.0 million cash, subject to a customary working capital adjustment and an escrow of $22.5 million. On November 3, 2020 we sold International Logistics for $13.0 million cash. The sale of these businesses was part of our strategic shift to exit non-core businesses in order to pursue portfolio optimization and to reduce debt. As part of this strategic shift, we previously sold Print Logistics in July 2018 and Courier Logistics in March 2020. During the quarter ended March 31, 2021, we finalized working capital adjustments and settled certain other contingencies related to the divested businesses, the impact of which is included in the Gain on sale of the discontinued operations, net of tax, for the quarter ended March 31, 2021. Upon the divestitures, we entered into transition services agreements with the buyers to assist them in the transition of certain functions, including, but not limited to, information technology, finance, and human resources. Further, we entered into several commercial agreements whereby we continue to receive logistics services from the divested business. Our involvement with the divested businesses is not material in the quarter ended March 31, 2021 . We have reflected the Courier Logistics business, the DLS Worldwide business, and the International Logistics business, as discontinued operations for all periods presented in the Condensed Consolidated Statements of Operations. Results of discontinued operations for the first quarter of 2020 were as follows: Three Months Ended March 31, 2020 Net sales $ 204.9 Cost of sales (179.4 ) Selling, general, administrative and other operating expenses (20.8 ) Restructuring, impairment and other expense (20.7 ) Operating loss from discontinued operations (16.0 ) Income tax benefit 1.1 Net loss from discontinued operations $ (14.9 ) Net sales includes sales from the Logistics businesses to RRD which were previously eliminated in consolidation and have been recast and are now shown as external sales within the financial results of discontinued operations above. The net sales were $12.2 million for the three months ended March 31, 2020. Restructuring, impairment, and other expenses included $20.6 million of non-cash charges related to impairment of goodwill recorded in the first quarter of 2020. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 3. Revenue Recognition Disaggregation of Revenue The following table presents net sales disaggregated by products and services: March 31, 2021 2020 Commercial print $ 336.5 $ 363.4 Packaging 174.4 115.1 Direct marketing 130.9 182.8 Labels 128.7 121.6 Statements 118.5 126.9 Digital print and fulfillment 97.5 113.6 Supply chain management 72.7 69.7 Forms 48.8 52.4 Business process outsourcing 42.5 44.0 Digital and creative solutions 22.6 27.4 Total net sales $ 1,173.1 $ 1,216.9 Variable Consideration Certain clients may receive volume-based rebates or early payment discounts, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be earned by our clients and reduce revenue accordingly. We do not expect significant changes to estimates of variable consideration. Given the nature of our products and the history of returns, product returns are not significant. Contract Balances The following table provides information about contract liabilities from contracts with clients: Contract Liabilities Short-Term Balance at December 31, 2020 $ 15.6 Balance at March 31, 2021 17.6 Contract liabilities primarily relate to client advances received prior to completion of performance obligations. Reductions in contract liabilities are a result of our completion of performance obligations. Revenue recognized during the three months ended March 31, 2021 from amounts included in contract liabilities at the beginning of the period was approximately $8.8 million. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories The components of inventories, net of excess and obsolescence reserves for raw materials and finished goods, at March 31, 2021 and December 31, 2020 were as follows: March 31, 2021 December 31, 2020 Raw materials and manufacturing supplies $ 149.2 $ 147.3 Work in process 63.4 64.8 Finished goods 106.1 107.9 LIFO reserve (17.9 ) (17.9 ) Total inventories $ 300.8 $ 302.1 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 5. Property, Plant and Equipment The components of property, plant and equipment at March 31, 2021 and December 31, 2020 were as follows: March 31, 2021 December 31, 2020 Land $ 38.2 $ 38.2 Buildings 360.7 361.0 Machinery and equipment 1,691.6 1,703.1 2,090.5 2,102.3 Less: Accumulated depreciation (1,660.6 ) (1,663.5 ) Total property, plant and equipment-net $ 429.9 $ 438.8 During the three months ended March 31, 2021 and 2020 depreciation expense was $23.4 million and $28.2 million, respectively. During the fourth quarter of 2017, we entered into an agreement to sell a printing facility in Shenzhen, China and transfer the related land use rights. As of March 31, 2021 $250.0 million, subject to Our contract with the buyer requires them to pay the final installment in 2022 even if the government’s approval is further delayed. If the buyer fails to comply with terms of the agreement or terminates for any reason, the Company is entitled to retain 30% of the purchase price as liquidated damages. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets The carrying amount of goodwill at March 31, 2021 and December 31, 2020 were as follows: Business Services Marketing Solutions Total Net book value as of December 31, 2020 Goodwill $ 2,076.1 $ 519.5 $ 2,595.6 Accumulated impairment losses (1,930.9 ) (254.1 ) (2,185.0 ) Total 145.2 265.4 410.6 Foreign exchange (3.2 ) — (3.2 ) Net book value as of March 31, 2021 Goodwill 2,073.1 519.5 2,592.6 Accumulated impairment losses (1,931.1 ) (254.1 ) (2,185.2 ) Total $ 142.0 $ 265.4 $ 407.4 The components of other intangible assets at March 31, 2021 and December 31, 2020 were as follows: March 31, 2021 December 31, 2020 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Amount Amortization Value Amount Amortization Value Client relationships $ 413.5 $ (361.8 ) $ 51.7 $ 417.0 $ (361.1 ) $ 55.9 Trade names 28.8 (16.5 ) 12.3 29.1 (16.2 ) 12.9 Trademarks, licenses and agreements 23.2 (23.2 ) — 23.2 (23.2 ) — Patents 2.0 (2.0 ) — 2.0 (2.0 ) — Total amortizable other intangible assets 467.5 (403.5 ) 64.0 471.3 (402.5 ) 68.8 Amortization expense for other intangible assets was $4.7 million for the three months ended March 31, 2021 and was $4.9 million for the three months ended March 31, 2020. |
Restructuring, Impairment and O
Restructuring, Impairment and Other | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Restructuring, Impairment and Other | 7. Restructuring, Impairment and Other For the three months ended March 31, 2021 and 2020, we recorded the following net restructuring, impairment and other expenses: Three Months Ended March 31, 2021 Employee Other Restructuring Multi-Employer Pension Plan Impairment and Terminations Charges Charges Other Total Business Services $ 0.8 $ 1.6 $ 0.6 $ 0.4 $ 3.4 Marketing Solutions 0.3 1.8 0.1 — 2.2 Corporate 0.4 0.6 (0.8 ) — 0.2 Total $ 1.5 $ 4.0 $ (0.1 ) $ 0.4 $ 5.8 Three Months Ended March 31, 2020 Employee Other Restructuring Multi-Employer Pension Plan Impairment and Terminations Charges Charges Other Total Business Services $ 5.8 $ 1.0 $ 0.6 $ (1.7 ) $ 5.7 Marketing Solutions 0.4 — 0.1 — 0.5 Corporate 1.9 3.1 — — 5.0 Total $ 8.1 $ 4.1 $ 0.7 $ (1.7 ) $ 11.2 Restructuring, Impairment and Other For the three months ended March 31, 2021, we recorded net restructuring charges of $1.5 million for employee termination costs. These charges primarily relate to announced facility closures and the reorganization of selling, general and administrative functions across each segment. We also incurred $4.0 million of other restructuring charges during the three months ended March 31, 2021, comprised of lease terminations and environmental costs. For the three months ended March 31, 2020, we recorded net restructuring charges of $8.1 million for employee termination costs. These charges primarily related to the closure of the Chilean operations and other facility closures in the Business Services segment and the reorganization of selling, general and administrative functions across each segment. We also incurred other restructuring charges of $4.1 million for the three months ended March 31, 2020 and recorded net gains of $1.7 million on the sale of restructured facilities for the three months ended March 31, 2020. Restructuring and Multiemployer Pension Plan (“MEPP”) Reserves Restructuring and MEPP reserves as of December 31, 2020 and March 31, 2021, and changes during the three months ended March 31, 2021, were as follows: Restructuring Foreign December 31, and Other Exchange and Cash March 31, 2020 Charges Other Paid 2021 Employee terminations $ 6.2 $ 1.5 $ 0.1 $ (2.6 ) $ 5.2 MEPP withdrawal obligations 70.2 (0.1 ) — (5.4 ) 64.7 Other 12.2 4.0 0.2 (4.3 ) 12.1 Total $ 88.6 $ 5.4 $ 0.3 $ (12.3 ) $ 82.0 The current portion of restructuring reserves of $35.9 million at March 31, 2021 was included in Accrued liabilities and other, while the long-term portion of $46.1 million, primarily related to MEPP withdrawal obligations, employee terminations in litigation and other, was included in Other noncurrent liabilities at March 31, 2021. The liabilities for the withdrawal obligations associated with our previous decision to withdraw from all MEPPs included in Accrued liabilities and other and Other noncurrent liabilities are $21.6 million and $43.1 million, respectively, as of March 31, 2021 . Payments on our MEPP withdrawal obligations are scheduled to be substantially completed by 2034. Changes based on uncertainties in these estimated withdrawal obligations could affect the ultimate charges related to MEPP withdrawals. The restructuring liabilities classified as “other” primarily consisted of reserves for employee termination litigation and environmental matters. Any potential recoveries or additional charges could affect amounts reported in our condensed consolidated financial statements. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Mar. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | 8. Retirement Plans Components of net pension and other postretirement benefits plan (“OPEB”) income for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 Pension income: Service cost $ 0.3 $ 0.3 Interest cost 5.1 6.9 Expected return on plan assets (9.5 ) (10.2 ) Amortization, net 2.9 2.5 Net pension income $ (1.2 ) $ (0.5 ) OPEB income: Interest cost 1.1 1.8 Expected return on plan assets (3.0 ) (3.2 ) Amortization, net (1.5 ) (1.5 ) Net OPEB income $ (3.4 ) $ (2.9 ) During the three months ended March 31, 2021 and 2020, we contributed $1.9 million and $4.0 million, respectively, to our retirement plans. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share Based Compensation [Abstract] | |
Share-Based Compensation | 9. Share-Based Compensation In March 2021, we awarded our annual share-based compensation grants, which consisted of 0.8 million restricted stock units with a grant date fair value of $4.52 per unit and 0.8 million performance share units also with a grant date fair value of $4.52 per unit. The restricted stock units are subject to a three year ratable vesting period and the performance share units are subject to a three year performance period. Dividends are not paid on restricted stock units. In addition, in March 2021 we granted 0.9 million cash-settled restricted stock units (“phantom restricted stock units”) and 0.9 million cash-settled performance stock units (“phantom performance stock units”). Our share price on the date of grant was $4.52. The phantom restricted stock units vest and are payable in three equal installments over a period of three years after the grant date. The phantom performance stock units are subject to a three year performance period. Phantom stock units are not shares of our common stock and therefore the recipients of these awards do not receive ownership interest in the Company or stockholder voting rights subject in some cases to early vesting upon specified events, including death or permanent disability of the grantee, termination of the grantee’s employment under certain circumstances or a change in control of the Company. All phantom stock unit awards are classified as liability awards due to their expected settlement in cash and are included in Accrued liabilities and other in the Condensed Consolidated Balance Sheets. Compensation expense for these awards is measured based upon the fair value of the awards at the end of each reporting period. Dividends are not paid on phantom stock units. Compensation expense for these plans was $6.8 million for the three months ended March 31, 2021 and $0.3 million for the three months ended March 31, 2020 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Equity | 10. Equity Our equity as of December 31, 2020 and March 31, 2021, and changes during the three months ended March 31, 2021, were as follows: Common Additional Paid-in- Treasury Accumulated Accumulated Other Comprehensive Total RRD's Stockholders' Noncontrolling Total Stock Capital Stock Deficit Loss Equity Interests Equity Balance at December 31, 2020 $ 0.9 $ 3,263.6 $ (1,127.6 ) $ (2,240.7 ) $ (153.9 ) $ (257.7 ) $ 13.9 $ (243.8 ) Net (loss) income (1.3 ) (1.3 ) 0.2 (1.1 ) Other comprehensive loss (6.4 ) (6.4 ) (0.2 ) (6.6 ) Share-based compensation 0.2 0.2 0.2 Issuance of share-based awards, net of withholdings and other (158.4 ) 156.0 (2.4 ) (2.4 ) Distributions to noncontrolling interests — (0.7 ) (0.7 ) Balance at March 31, 2021 $ 0.9 $ 3,105.4 $ (971.6 ) $ (2,242.0 ) $ (160.3 ) $ (267.6 ) $ 13.2 $ (254.4 ) Our equity as of December 31, 2019 and March 31, 2020, and changes during three months ended March 31, 2020, were as follows: Common Additional Paid-in- Treasury Accumulated Accumulated Other Comprehensive Total RRD's Stockholders' Noncontrolling Total Stock Capital Stock Deficit Loss Equity Interests Equity Balance at December 31, 2019 $ 0.9 $ 3,348.0 $ (1,219.6 ) $ (2,336.8 ) $ (176.2 ) $ (383.7 ) $ 13.4 $ (370.3 ) Net (loss) income (13.0 ) (13.0 ) 0.1 (12.9 ) Other comprehensive income (31.0 ) (31.0 ) (0.2 ) (31.2 ) Share-based compensation 1.4 1.4 1.4 Issuance of share-based awards, net of withholdings and other (82.3 ) 81.8 (0.5 ) (0.5 ) Cash dividends paid (2.1 ) (2.1 ) (2.1 ) Cumulative impact of adopting ASU 2016-03, net of tax (0.3 ) (0.3 ) (0.3 ) Distributions to noncontrolling interests — (0.7 ) (0.7 ) Balance at March 31, 2020 $ 0.9 $ 3,267.1 $ (1,137.8 ) $ (2,352.2 ) $ (207.2 ) $ (429.2 ) $ 12.6 $ (416.6 ) |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 11. Earnings per Share Basic earnings per share is calculated by dividing net earnings attributable to RRD common stockholders by the weighted average number of common shares outstanding for the period. In computing diluted earnings per share, basic earnings per share is adjusted for the assumed issuance of all potentially dilutive share-based awards, including stock options, restricted stock units and performance share units. Performance share units are excluded if the performance targets upon which the issuance of the shares is contingent have not been achieved and the respective performance period has not been completed as of the end of the current period. Additionally, stock options are considered anti-dilutive when the exercise price exceeds the average market value of our stock price during the applicable period. In periods when we are in a net loss, share-based awards are excluded from the calculation of earnings per share as their inclusion would have an anti-dilutive effect. During the three months ended March 31, 2021 and 2020 , no shares of common stock were purchased by us; however, shares were withheld for tax liabilities upon the vesting of equity awards. The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 Basic and diluted net (loss) earnings per share attributable to RRD common stockholders: Continuing operations $ (0.03 ) $ 0.10 Discontinued operations $ 0.01 $ (0.28 ) Net loss attributable to RR Donnelley stockholders $ (0.02 ) $ (0.18 ) Numerator: Net (loss) earnings attributable to RRD common stockholders - continuing operations $ (1.9 ) $ 6.9 Net earnings (loss) from discontinued operations, net of income taxes 0.6 (19.9 ) Net loss attributable to RRD common stockholders $ (1.3 ) $ (13.0 ) Denominator: Weighted average number of common shares outstanding - Basic and Diluted 72.7 71.6 Weighted average number of anti-dilutive share-based awards: Stock options 0.3 0.4 Restricted stock units 0.8 1.0 Total 1.1 1.4 Dividends declared per common share $ — $ 0.03 |
Other Comprehensive Loss
Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Other Comprehensive Loss | 12. Other Comprehensive Loss The components of other comprehensive loss and income tax expense (benefit) allocated to each component for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 Before Net of Tax Income Tax Amount Tax Amount Translation adjustments $ (10.2 ) $ — $ (10.2 ) Adjustments for net periodic pension and OPEB cost 1.4 0.3 1.1 Change in fair value of derivatives 3.4 0.9 2.5 Other comprehensive (loss) income $ (5.4 ) $ 1.2 $ (6.6 ) Three Months Ended March 31, 2020 Before Net of Tax Income Tax Amount Tax Amount Translation adjustments $ (20.0 ) $ — $ (20.0 ) Adjustments for net periodic pension and OPEB cost 1.0 0.2 0.8 Change in fair value of derivatives (15.7 ) (3.7 ) (12.0 ) Other comprehensive loss $ (34.7 ) $ (3.5 ) $ (31.2 ) Accumulated other comprehensive loss by component as of December 31, 2020 and March 31, 2021, and changes during the three months ended March 31, 2021, were as follows: Changes in the Fair Value of Derivatives Pension and OPEB Cost Translation Adjustments Total Balance at December 31, 2020 $ (11.0 ) $ (178.5 ) $ 35.6 $ (153.9 ) Other comprehensive income (loss) before reclassifications 1.2 — (10.0 ) (8.8 ) Amounts reclassified from accumulated other comprehensive loss 1.3 1.1 — 2.4 Net change in accumulated other comprehensive loss 2.5 1.1 (10.0 ) (6.4 ) Balance at March 31, 2021 $ (8.5 ) $ (177.4 ) $ 25.6 $ (160.3 ) Accumulated other comprehensive loss by component as of December 31, 2019 and March 31, 2020, and changes during the three months ended March 31, 2020, were as follows: Changes in the Fair Value of Derivatives Pension and OPEB Cost Translation Adjustments Total Balance at December 31, 2019 $ 1.0 $ (185.7 ) $ 8.5 $ (176.2 ) Other comprehensive loss before reclassifications (11.8 ) — (19.8 ) (31.6 ) Amounts reclassified from accumulated other comprehensive loss (0.2 ) 0.8 — 0.6 Net change in accumulated other comprehensive loss (12.0 ) 0.8 (19.8 ) (31.0 ) Balance at March 31, 2020 $ (11.0 ) $ (184.9 ) $ (11.3 ) $ (207.2 ) Reclassifications from accumulated other comprehensive loss for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, Classification in the Condensed 2021 2020 Consolidated Statements of Operations Amortization of pension and OPEB cost: Net actuarial loss $ 2.8 $ 1.6 Investment and other income-net Net prior service credit (1.4 ) (0.6 ) Investment and other income-net Reclassifications before tax 1.4 1.0 Income tax expense 0.3 0.2 Reclassification, net of tax $ 1.1 $ 0.8 Derivatives: Net realized income (loss) $ 1.3 $ (0.2 ) Interest expense-net Reclassification, net of tax 1.3 (0.2 ) Total reclassifications, net of tax $ 2.4 $ 0.6 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment Information Our segments and their product and service offerings are summarized below: Business Services Business Services provides customized solutions at scale to help clients inform, service and transact with their customers. The segment’s primary product and service offerings include commercial print, packaging, labels, statement printing, supply chain management, forms and business process outsourcing. This segment also includes all of our operations in Asia, Europe, Canada and Latin America. Marketing Solutions Marketing Solutions leverages an integrated portfolio of data analytics, creative services and multichannel execution to deliver comprehensive, end-to-end solutions. The segment’s primary product and service offerings include direct marketing, in-store marketing, digital print, kitting, fulfillment, digital and creative solutions and list services. Corporate Certain selling general and administrative expenses are not directly attributable to our operating segments and are therefore reported at Corporate. These expenses include executive, legal, finance, communications, certain facility costs and last-in-first-out inventory provisions. In addition, certain costs and earnings of employee benefit plans, such as pension and OPEB expense (income) and share-based compensation, are included in Corporate and not allocated to the operating segments. Corporate also manages our cash pooling structures, which enables participating international locations to draw on our international cash resources to meet local liquidity needs. Information by Segment We have disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by our chief operating decision-maker and is most consistent with the presentation of profitability reported within the Condensed Consolidated Financial Statements. Three Months Ended March 31, 2021 Assets of Income (Loss) Depreciation Operations Total Intersegment Net from and Capital As of Sales Sales Sales Operations Amortization Expenditures March 31, 2021 Business Services $ 936.0 $ (13.9 ) $ 922.1 $ 53.2 $ 23.0 $ 7.8 $ 2,157.0 Marketing Solutions 255.6 (4.6 ) 251.0 13.8 8.0 3.0 627.6 Total operating segments 1,191.6 (18.5 ) 1,173.1 67.0 31.0 10.8 2,784.6 Corporate — — — (41.9 ) 2.8 2.2 195.8 Total operations $ 1,191.6 $ (18.5 ) $ 1,173.1 $ 25.1 $ 33.8 $ 13.0 $ 2,980.4 Three Months Ended March 31, 2020 Assets of Income (Loss) Depreciation Operations Total Intersegment Net from and Capital As of Sales Sales Sales Operations Amortization Expenditures December 31, 2020 Business Services $ 906.5 $ (13.4 ) $ 893.1 $ 37.7 $ 24.4 $ 10.7 $ 2,220.9 Marketing Solutions 330.4 (6.6 ) 323.8 24.9 14.2 1.6 674.3 Total operating segments 1,236.9 (20.0 ) 1,216.9 62.6 38.6 12.3 2,895.2 Corporate — — — (29.5 ) 0.6 5.4 235.7 Total operations $ 1,236.9 $ (20.0 ) $ 1,216.9 $ 33.1 $ 39.2 $ 17.7 $ 3,130.9 Net restructuring, impairment and other expenses by segment are described in Note 7, Restructuring, Impairment and Other |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies We are subject to laws and regulations relating to the protection of the environment. We provide for expenses associated with environmental remediation obligations when such amounts are probable and can be reasonably estimated. Such accruals are adjusted as new information develops or circumstances change and are generally not discounted. We have been designated as a potentially responsible party or have received claims in four active federal and state Superfund and other multiparty remediation sites. In addition to these sites, we may also have the obligation to remediate six other previously and currently owned facilities. At the Superfund sites, the Comprehensive Environmental Response, Compensation and Liability Act provides that our liability could be joint and several, meaning that we could be required to pay an amount in excess of our proportionate share of the remediation costs. Our understanding of the financial strength of other potentially responsible parties at the multiparty sites and of other liable parties at the previously owned facilities has been considered, where appropriate, in the determination of our estimated liability. We believe that our recorded accruals, recorded in Accrued liabilities and other and Other noncurrent liabilities, are adequate to cover our share of the potential costs of remediation at each of the multiparty sites and the previously and currently owned facilities. It is not possible to quantify with certainty the potential impact of actions regarding environmental matters, particularly remediation and other compliance efforts that we may undertake in the future. However, in our opinion, compliance with the present environmental protection laws, before taking into account estimated recoveries from third parties, will not have a material effect on our consolidated results of operations, financial position or cash flows. In April 2019, we received a subpoena from the SEC related to previous business dealings with the Brazilian Ministry of Education. The SEC and Department of Justice (“DOJ”) are investigating the matter, and we are cooperating as they conduct their investigations. In additi on, the Brazil authorities are also investigating the matter . From time to time, our clients file voluntary petitions for reorganization under United States bankruptcy laws. In such cases, certain pre-petition payments received by us from these parties could be considered preference items and subject to return. We also regularly investigate matters reported to our whistleblower hotline and are currently investigating matters in certain foreign locations. In addition, we may be party to litigation arising in the ordinary course of business. We believe that the final resolution of these preference items, investigations, and litigation will not have a material effect on our consolidated results of operations, financial position or cash flows. Contingencies related to LSC Communication, Inc. and Subsidiaries (“LSC”) and Donnelley Financial Solutions, Inc. (“Donnelley Financial”) Subsequent to the spinoff of LSC Communications, Inc. and Subsidiaries (“LSC”) and Donnelley Financial Solutions, Inc. (“Donnelley Financial”) on October 1, 2016, we may be contingently liable for obligations under various operating leases for office, warehouse and manufacturing locations of LSC and Donnelley Financial. In the event that LSC or Donnelley Financial, or any successor lessee, fail to make lease payments or fail to pay other obligations under these lease agreements, we may be required to satisfy those obligations to the lessor. Our exposure to these potential contingent liabilities decreases over time as LSC and Donnelley Financial pay monthly lease obligations and as the leases expire. As of March 31, 2021 these potential contingent obligations were $43.4 million and $2.3 million for LSC and Donnelley Financial, respectively. On April 13, 2020, LSC announced that it, along with most of its U.S. subsidiaries, voluntarily filed for business reorganization under Chapter 11 of the U.S. Bankruptcy Code. In September 2020, a third-party (the “Buyer”) offered to buy the assets and assume certain obligations of LSC. Although the buyer assumed the majority of LSC’s existing leases, we will continue to be contingently liable for these leases until their termination or renewal. In May and June 2020 we became aware that LSC failed to make required monthly contributions to certain of their multiemployer pension plans (“MEPP”). In accordance with laws and regulations governing multiemployer pension plans, we believe that we and Donnelley Financial, as former members of the control group, are contingently liable on a joint and several liability basis for LSC’s MEPP obligations. We believe that the total undiscounted MEPP obligations for which LSC was responsible for was approximately $100 million and was payable over an average 13-year period. The amount of our ultimate liability related to LSC's MEPP obligations is contingent upon the outcome of our negotiations with Donnelley Financial concerning how the obligations would be apportioned between us and Donnelley Financial. These negotiations commenced during the third quarter of 2020, when the parties agreed to enter into mediation, and then arbitration, after an agreement was not reached though the mediation process. During the three months ended March 31, 2021, Donnelley Financial filed notice to commence the arbitration process. In 2020, we recorded a contingent liability of approximately $37.1 million representing our estimate of the aggregate payments we believe we will be required to make with respect to LSC’s MEPP liabilities. This amount however could be adjusted in the future based on the final allocation as a result of the arbitration process. Payments to settle this liability are scheduled to be completed by 2034. During the first quarter of 2021, we and Donnelley Financial commenced negotiations with each of the three MEPPs to settle the MEPP liabilities. During the period, we successfully negotiated a settlement with one of the three plans and as a result recorded a $1.7 million gain in restructuring, impairment and other expense on the Condensed Consolidated Statement of Operations reflecting our estimated share of the reduced liability. The settlement payment of $9.2 million was made in April 2021. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 15. Debt Debt at March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 8.875% debentures due April 15, 2021 $ 55.6 $ 55.6 7.000% notes due February 15, 2022 79.3 79.3 6.500% notes due November 15, 2023 75.0 75.0 Term Loan due January 15, 2024 (a) 534.7 535.8 6.000% notes due April 1, 2024 61.7 61.7 8.250% notes due July 1, 2027 245.8 245.8 6.625% debentures due April 15, 2029 103.4 103.4 8.500% notes due April 15, 2029 302.1 301.6 8.820% debentures due April 15, 2031 54.5 54.5 Unamortized debt issuance costs (9.0 ) (9.6 ) Total debt 1,503.1 1,503.1 Less: current portion 140.4 61.1 Long-term debt $ 1,362.7 $ 1,442.0 (a) As of March 31, 2021 and December 31, 2020, the interest rate on the Term Loan due January 15, 2024 was 5.11% and 5.15%, respectively. The fair values of the notes and debentures, which were determined using the market approach based upon quoted prices or interest rates available to us for debt obligations with similar terms and maturities, were determined to be Level 2 under the fair value hierarchy. The fair value of our total debt at March 31, 2021 and December 31, 2020 was greater than its book value by approximately $170.6 million and $142.9 million, respectively. We entered into an $800.0 million senior secured asset-based revolving credit facility (the “ABL Credit Facility”) on September 29, 2017, pursuant to a credit agreement (the “ABL Credit Agreement”). The ABL Credit Facility was amended on October 15, 2018 and was scheduled to mature on September 29, 2022. On April 16, 2021, we amended the ABL Credit Agreement to, among other things, reduce the aggregate commitments under the ABL Credit Facility from $800.0 million to $650.0 million and extend the maturity date to April 16, 2026. The amount available to be borrowed under the ABL Credit Facility is equal to the lesser of (a) $650.0 million ($800.0 million as of March 31, 2021) and (b) a borrowing base formula based on the amount of accounts receivable, inventory, machinery, equipment and, if we were to so elect in the future subject to the satisfaction of certain conditions, fee-owned real estate of ours and our material domestic subsidiaries, subject to certain eligibility criteria and advance rates (collectively, the “Borrowing Base”). The aggregate amount of real estate, machinery and equipment that can be included in the Borrowing Base formula is limited to $175.0 million. Borrowings under the ABL Credit Facility bear interest at a rate dependent on the average quarterly availability and is calculated according to a base rate (except in certain circumstances, based on the prime rate) or a Eurocurrency rate (except in certain circumstances, based on LIBOR) plus an applicable margin. As currently amended, the applicable margin for base rate loans ranges from 0.25% to 0.75% and the applicable margin for Eurocurrency loans ranges from 1.25% to 1.75%. In addition, a fee is payable quarterly on the unused portion of the total commitments. This fee accrues at a rate of either 0.25% or 0.375% depending upon the average usage of the facility. Borrowings under the ABL Credit Facility may be used for working capital and general corporate purposes. Based on our Borrowing Base as of March 31, 2021 and letters of credit, we had approximately $512.0 million borrowing capacity available under the ABL Credit Facility. The weighted average interest rate on borrowings under our ABL Credit Facility was 1.6% and 2.7% during the three months ended March 31, 2021 and 2020, respectively. There were no outstanding borrowings on our ABL Credit Facility as of March 31, 2021 and December 31, 2020. On October 15, 2018, we entered into a $550.0 million senior secured term loan B (the “Term Loan”) pursuant to a credit agreement (the “Term Loan Credit Agreement”). The Term Loan is scheduled to mature on January 15, 2024, at which time the remaining outstanding balance under the Term Loan will be due and payable. Principal payments of $1.4 million are due quarterly. The Term Loan bears interest based on the London Interbank Offered Rate (LIBOR) plus a margin of 5% or a base rate plus a margin of 4%. On April 15, 2021, we repaid the remaining $55.6 million aggregate principle of our 8.875% Debentures using a draw on our ABL Credit Facility . On April 28, 2021, we completed an offering of $400 million aggregate principal amount of 6.125% senior secured notes due 2026 (the “2026 Notes”). The Notes are general senior secured obligations of the Company and are guaranteed by our domestic, wholly-owned subsidiaries that are guarantors of the ABL Credit Facility and Term Loan. Interest on the 2026 Notes is payable semi-annually on May 1 and November 1 of each year, commencing on November 1, 2021. The Notes mature on November 1, 2026. The ABL Credit Agreement, Term Loan Credit Agreement, and the indenture for the 2026 Notes (the “2026 Notes Indenture”) contain customary affirmative and negative covenants including negative covenants restricting, among other things, our ability to incur or guarantee debt, or issue preferred stock, make certain loans or investments, make certain restricted payments (including payments on certain other debt, external dividends, and stock repurchases), incur liens securing other debt, consummate certain fundamental transactions, enter into certain transactions with affiliates and consummate asset sales. The ABL Credit Agreement contains a covenant which requires us to maintain a minimum fixed charge coverage ratio of 1.0 to 1.0 if availability under the ABL Credit Facility declines below certain levels. The Term Loan Credit Agreement and the 2026 Notes Indenture require that the net cash proceeds of significant asset sales be used to prepay the Term Loan and purchase the 2026 Notes to the extent that the net cash proceeds are not used for reinvestment in assets useful to our business, certain acquisitions and investments, repayment of certain borrowings under our ABL Credit Facility or to reduce, prepay, repay or purchase certain indebtedness Interest paid was $22.9 million for the three months ended March 31, 2021 and $23.5 million for the three months ended March 31, 2020. Interest income was $0.4 million for the three months ended March 31, 2021 and $0.5 million for the three months ended March 31, 2020. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | 16. Derivatives All derivatives are recorded as other current or noncurrent assets or other current or noncurrent liabilities in the Condensed Consolidated Balance Sheets at their respective fair values. Unrealized gains and losses related to derivatives are recorded in the Condensed Consolidated Statements of Operations, or in other comprehensive income (loss), net of applicable income taxes, depending on the purpose for which the derivative is held. At the inception of a hedge transaction, we formally document the hedge relationship and the risk management objective for undertaking the hedge. In addition, we assess both at inception of the hedge and on an ongoing basis, whether the derivative in the hedging transaction has been highly effective in offsetting changes in fair value or cash flows of the hedged item and whether the derivative is expected to continue to be highly effective. The impact of any ineffectiveness is also recognized in the Condensed Consolidated Statements of Operations. We are exposed to the impact of foreign currency fluctuations based on our global operations. Foreign currency fluctuations affect the U.S. dollar value of revenues earned and expenses incurred in foreign currencies. We are also exposed to currency risk to the extent we own assets or incur liabilities, or enter into other transactions that are not in the functional currency of the subsidiary in which we operate. We employ different practices to manage these risks, including where appropriate the use of derivative instruments, such as foreign currency forwards. To the extent the gains and losses associated with the fair values of foreign currency derivatives are recognized in the Consolidated Statements of Operations, they are generally offset by gains and losses on underlying payables and receivables. We do not use derivative financial instruments for trading or speculative purposes. The aggregate notional value of the forward contracts at March 31, 2021 and December 31, 2020 was $363.3 million and $220.7 million, respectively. The fair values of foreign currency contracts were determined to be Level 2 under the fair value hierarchy and are valued using market exchange rates. In 2019 and 2020, we entered into interest rate swap agreements to manage interest rate risk exposure, effectively changing the interest rate on $400.0 million of our floating-rate Term Loan based on LIBOR to a fixed-rate. The interest rate swaps, with a notional value of $400.0 million, were designated as cash flow hedges against the variability of cash flows associated with our Term Loan scheduled to mature on January 15, 2024, which are attributable to changes in the benchmark interest rate. The fair values of interest rate swaps were determined to be Level 2 under the fair value hierarchy and were developed using the market standard methodology of netting the discounted future variable cash payments and the discounted expected fixed cash receipts. Credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, are incorporated in the fair values to account for potential nonperformance risk. We evaluate the credit value adjustments of the interest rate swap agreements, which take into account the possibility of counterparty and our own default, on at least a quarterly basis. Our foreign currency contracts and interest rate swaps are subject to master netting agreements that allow us to settle positive and negative positions with the respective counterparties. Under these master netting agreements, net settlement generally permits us or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. We manage credit risk for our derivative positions on a counterparty-by-counterparty basis, considering the net portfolio exposure with each counterparty, consistent with our risk management strategy for such transactions. Our agreements with each of our counterparties contain a provision where we could be declared in default on our derivative obligations if we either default or, in certain cases, are capable of being declared in default of any of our indebtedness greater than specified thresholds. These agreements also contain a provision where we could be declared in default subsequent to a merger or restructuring type event if the creditworthiness of the resulting entity is materially weakened. As of March 31, 2021 Classification on Consolidated Balance Sheets March 31, 2021 December 31, 2020 Derivative assets Foreign currency contracts: Not designated as hedging instruments Prepaid expenses and other current assets $ 0.3 $ 5.9 Derivative liabilities Foreign currency contracts: Not designated as hedging instruments Accrued liabilities and other $ 3.5 $ 2.3 Interest rate swap agreements: Designated as cash flow hedges Accrued liabilities and other 5.0 5.0 Designated as cash flow hedges Other noncurrent liabilities 6.2 9.6 The pre-tax losses (gains) recognized on derivative financial instruments in the Condensed Three Months Ended March 31, Classification of Loss (Gain) Recognized in the Consolidated Statements of Operations 2021 2020 Derivatives not designated as hedges Foreign currency contracts Selling, general and administrative expenses $ 2.4 $ 1.2 Derivatives designated as cash flow hedges Interest rate swap agreements Interest expense, net 1.3 (0.2 ) The pre-tax (gains) losses recognized on derivative financial instruments in the Condensed Three Months Ended March 31, 2021 2020 Derivatives designated as cash flow hedges Interest rate swap agreements $ (2.1 ) $ 15.5 |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | 17. New Accounting Pronouncements Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12 “Simplifying the Accounting for Income Taxes (Topic 740)” (“ASU 2019-12”), which simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Accounting Standards Codification (“ASC”) 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The standard also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, however early adoption was permitted. We adopted ASU 2019-12 on January 1, 2021 and will reflect changes as appropriate, and no changes are necessary to earlier periods. Accounting Pronouncements Issued and Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform, which provides companies with optional guidance, including expedients and exceptions for applying generally accepted accounting principles to contracts and other transactions affected by reference rate reform, such as LIBOR, was effective upon issuance and will be applied to future contracts with changes to the reference rate. To date, we have had no such modification to any of our contracts. We are currently evaluating the prospective impact of the standard, and we will adopt ASU 2020-04 upon such contract modification. The impact of the standard is not expected to be material to our Consolidated Financial Statements. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash at March 31, 2021 and December 31, 2020 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows. March 31, 2021 December 31, 2020 Cash and cash equivalents $ 261.6 $ 288.8 Restricted cash - current (a) 52.8 62.6 Restricted cash - noncurrent (b) 6.2 6.2 Total cash, cash equivalents and restricted cash $ 320.6 $ 357.6 (a) Included within Prepaid expenses and other current assets within the Condensed Consolidated Balance Sheets (b) Included within Other noncurrent assets within the Condensed Consolidated Balance Sheets |
Revenue Recognition | Disaggregation of Revenue The following table presents net sales disaggregated by products and services: March 31, 2021 2020 Commercial print $ 336.5 $ 363.4 Packaging 174.4 115.1 Direct marketing 130.9 182.8 Labels 128.7 121.6 Statements 118.5 126.9 Digital print and fulfillment 97.5 113.6 Supply chain management 72.7 69.7 Forms 48.8 52.4 Business process outsourcing 42.5 44.0 Digital and creative solutions 22.6 27.4 Total net sales $ 1,173.1 $ 1,216.9 Variable Consideration Certain clients may receive volume-based rebates or early payment discounts, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be earned by our clients and reduce revenue accordingly. We do not expect significant changes to estimates of variable consideration. Given the nature of our products and the history of returns, product returns are not significant. Contract Balances The following table provides information about contract liabilities from contracts with clients: Contract Liabilities Short-Term Balance at December 31, 2020 $ 15.6 Balance at March 31, 2021 17.6 Contract liabilities primarily relate to client advances received prior to completion of performance obligations. Reductions in contract liabilities are a result of our completion of performance obligations. Revenue recognized during the three months ended March 31, 2021 from amounts included in contract liabilities at the beginning of the period was approximately $8.8 million. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash at March 31, 2021 and December 31, 2020 reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statement of Cash Flows. March 31, 2021 December 31, 2020 Cash and cash equivalents $ 261.6 $ 288.8 Restricted cash - current (a) 52.8 62.6 Restricted cash - noncurrent (b) 6.2 6.2 Total cash, cash equivalents and restricted cash $ 320.6 $ 357.6 (a) Included within Prepaid expenses and other current assets within the Condensed Consolidated Balance Sheets (b) Included within Other noncurrent assets within the Condensed Consolidated Balance Sheets |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Results and Assets and Liabilities of Discontinued Operations | Results of discontinued operations for the first quarter of 2020 were as follows: Three Months Ended March 31, 2020 Net sales $ 204.9 Cost of sales (179.4 ) Selling, general, administrative and other operating expenses (20.8 ) Restructuring, impairment and other expense (20.7 ) Operating loss from discontinued operations (16.0 ) Income tax benefit 1.1 Net loss from discontinued operations $ (14.9 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Net Sales Disaggregated by Products and Services | The following table presents net sales disaggregated by products and services: March 31, 2021 2020 Commercial print $ 336.5 $ 363.4 Packaging 174.4 115.1 Direct marketing 130.9 182.8 Labels 128.7 121.6 Statements 118.5 126.9 Digital print and fulfillment 97.5 113.6 Supply chain management 72.7 69.7 Forms 48.8 52.4 Business process outsourcing 42.5 44.0 Digital and creative solutions 22.6 27.4 Total net sales $ 1,173.1 $ 1,216.9 |
Contract Liabilities from Contracts with Clients | The following table provides information about contract liabilities from contracts with clients: Contract Liabilities Short-Term Balance at December 31, 2020 $ 15.6 Balance at March 31, 2021 17.6 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories, net of excess and obsolescence reserves for raw materials and finished goods, at March 31, 2021 and December 31, 2020 were as follows: March 31, 2021 December 31, 2020 Raw materials and manufacturing supplies $ 149.2 $ 147.3 Work in process 63.4 64.8 Finished goods 106.1 107.9 LIFO reserve (17.9 ) (17.9 ) Total inventories $ 300.8 $ 302.1 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Components of Property, Plant and Equipment | The components of property, plant and equipment at March 31, 2021 and December 31, 2020 were as follows: March 31, 2021 December 31, 2020 Land $ 38.2 $ 38.2 Buildings 360.7 361.0 Machinery and equipment 1,691.6 1,703.1 2,090.5 2,102.3 Less: Accumulated depreciation (1,660.6 ) (1,663.5 ) Total property, plant and equipment-net $ 429.9 $ 438.8 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Value of Goodwill by Segment | The carrying amount of goodwill at March 31, 2021 and December 31, 2020 were as follows: Business Services Marketing Solutions Total Net book value as of December 31, 2020 Goodwill $ 2,076.1 $ 519.5 $ 2,595.6 Accumulated impairment losses (1,930.9 ) (254.1 ) (2,185.0 ) Total 145.2 265.4 410.6 Foreign exchange (3.2 ) — (3.2 ) Net book value as of March 31, 2021 Goodwill 2,073.1 519.5 2,592.6 Accumulated impairment losses (1,931.1 ) (254.1 ) (2,185.2 ) Total $ 142.0 $ 265.4 $ 407.4 |
Components of Other Intangible Assets | The components of other intangible assets at March 31, 2021 and December 31, 2020 were as follows: March 31, 2021 December 31, 2020 Gross Gross Carrying Accumulated Net Book Carrying Accumulated Net Amount Amortization Value Amount Amortization Value Client relationships $ 413.5 $ (361.8 ) $ 51.7 $ 417.0 $ (361.1 ) $ 55.9 Trade names 28.8 (16.5 ) 12.3 29.1 (16.2 ) 12.9 Trademarks, licenses and agreements 23.2 (23.2 ) — 23.2 (23.2 ) — Patents 2.0 (2.0 ) — 2.0 (2.0 ) — Total amortizable other intangible assets 467.5 (403.5 ) 64.0 471.3 (402.5 ) 68.8 |
Restructuring, Impairment and_2
Restructuring, Impairment and Other (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Net Restructuring, Impairment and Other Expenses | For the three months ended March 31, 2021 and 2020, we recorded the following net restructuring, impairment and other expenses: Three Months Ended March 31, 2021 Employee Other Restructuring Multi-Employer Pension Plan Impairment and Terminations Charges Charges Other Total Business Services $ 0.8 $ 1.6 $ 0.6 $ 0.4 $ 3.4 Marketing Solutions 0.3 1.8 0.1 — 2.2 Corporate 0.4 0.6 (0.8 ) — 0.2 Total $ 1.5 $ 4.0 $ (0.1 ) $ 0.4 $ 5.8 Three Months Ended March 31, 2020 Employee Other Restructuring Multi-Employer Pension Plan Impairment and Terminations Charges Charges Other Total Business Services $ 5.8 $ 1.0 $ 0.6 $ (1.7 ) $ 5.7 Marketing Solutions 0.4 — 0.1 — 0.5 Corporate 1.9 3.1 — — 5.0 Total $ 8.1 $ 4.1 $ 0.7 $ (1.7 ) $ 11.2 |
Schedule of Changes in the Restructuring and MEPP Reserves | Restructuring and MEPP reserves as of December 31, 2020 and March 31, 2021, and changes during the three months ended March 31, 2021, were as follows: Restructuring Foreign December 31, and Other Exchange and Cash March 31, 2020 Charges Other Paid 2021 Employee terminations $ 6.2 $ 1.5 $ 0.1 $ (2.6 ) $ 5.2 MEPP withdrawal obligations 70.2 (0.1 ) — (5.4 ) 64.7 Other 12.2 4.0 0.2 (4.3 ) 12.1 Total $ 88.6 $ 5.4 $ 0.3 $ (12.3 ) $ 82.0 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Pension and Other Postretirement Benefit Plan (OPEB) Income | Components of net pension and other postretirement benefits plan (“OPEB”) income for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 Pension income: Service cost $ 0.3 $ 0.3 Interest cost 5.1 6.9 Expected return on plan assets (9.5 ) (10.2 ) Amortization, net 2.9 2.5 Net pension income $ (1.2 ) $ (0.5 ) OPEB income: Interest cost 1.1 1.8 Expected return on plan assets (3.0 ) (3.2 ) Amortization, net (1.5 ) (1.5 ) Net OPEB income $ (3.4 ) $ (2.9 ) |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Equity Activity | Our equity as of December 31, 2020 and March 31, 2021, and changes during the three months ended March 31, 2021, were as follows: Common Additional Paid-in- Treasury Accumulated Accumulated Other Comprehensive Total RRD's Stockholders' Noncontrolling Total Stock Capital Stock Deficit Loss Equity Interests Equity Balance at December 31, 2020 $ 0.9 $ 3,263.6 $ (1,127.6 ) $ (2,240.7 ) $ (153.9 ) $ (257.7 ) $ 13.9 $ (243.8 ) Net (loss) income (1.3 ) (1.3 ) 0.2 (1.1 ) Other comprehensive loss (6.4 ) (6.4 ) (0.2 ) (6.6 ) Share-based compensation 0.2 0.2 0.2 Issuance of share-based awards, net of withholdings and other (158.4 ) 156.0 (2.4 ) (2.4 ) Distributions to noncontrolling interests — (0.7 ) (0.7 ) Balance at March 31, 2021 $ 0.9 $ 3,105.4 $ (971.6 ) $ (2,242.0 ) $ (160.3 ) $ (267.6 ) $ 13.2 $ (254.4 ) Our equity as of December 31, 2019 and March 31, 2020, and changes during three months ended March 31, 2020, were as follows: Common Additional Paid-in- Treasury Accumulated Accumulated Other Comprehensive Total RRD's Stockholders' Noncontrolling Total Stock Capital Stock Deficit Loss Equity Interests Equity Balance at December 31, 2019 $ 0.9 $ 3,348.0 $ (1,219.6 ) $ (2,336.8 ) $ (176.2 ) $ (383.7 ) $ 13.4 $ (370.3 ) Net (loss) income (13.0 ) (13.0 ) 0.1 (12.9 ) Other comprehensive income (31.0 ) (31.0 ) (0.2 ) (31.2 ) Share-based compensation 1.4 1.4 1.4 Issuance of share-based awards, net of withholdings and other (82.3 ) 81.8 (0.5 ) (0.5 ) Cash dividends paid (2.1 ) (2.1 ) (2.1 ) Cumulative impact of adopting ASU 2016-03, net of tax (0.3 ) (0.3 ) (0.3 ) Distributions to noncontrolling interests — (0.7 ) (0.7 ) Balance at March 31, 2020 $ 0.9 $ 3,267.1 $ (1,137.8 ) $ (2,352.2 ) $ (207.2 ) $ (429.2 ) $ 12.6 $ (416.6 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | The reconciliation of the numerator and denominator of the basic and diluted earnings per share calculation and the anti-dilutive share-based awards for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 2020 Basic and diluted net (loss) earnings per share attributable to RRD common stockholders: Continuing operations $ (0.03 ) $ 0.10 Discontinued operations $ 0.01 $ (0.28 ) Net loss attributable to RR Donnelley stockholders $ (0.02 ) $ (0.18 ) Numerator: Net (loss) earnings attributable to RRD common stockholders - continuing operations $ (1.9 ) $ 6.9 Net earnings (loss) from discontinued operations, net of income taxes 0.6 (19.9 ) Net loss attributable to RRD common stockholders $ (1.3 ) $ (13.0 ) Denominator: Weighted average number of common shares outstanding - Basic and Diluted 72.7 71.6 Weighted average number of anti-dilutive share-based awards: Stock options 0.3 0.4 Restricted stock units 0.8 1.0 Total 1.1 1.4 Dividends declared per common share $ — $ 0.03 |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Components of Other Comprehensive Loss and Income Tax Expense (Benefit) Allocated to Each Component | The components of other comprehensive loss and income tax expense (benefit) allocated to each component for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, 2021 Before Net of Tax Income Tax Amount Tax Amount Translation adjustments $ (10.2 ) $ — $ (10.2 ) Adjustments for net periodic pension and OPEB cost 1.4 0.3 1.1 Change in fair value of derivatives 3.4 0.9 2.5 Other comprehensive (loss) income $ (5.4 ) $ 1.2 $ (6.6 ) Three Months Ended March 31, 2020 Before Net of Tax Income Tax Amount Tax Amount Translation adjustments $ (20.0 ) $ — $ (20.0 ) Adjustments for net periodic pension and OPEB cost 1.0 0.2 0.8 Change in fair value of derivatives (15.7 ) (3.7 ) (12.0 ) Other comprehensive loss $ (34.7 ) $ (3.5 ) $ (31.2 ) |
Summary of Changes in Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss by component as of December 31, 2020 and March 31, 2021, and changes during the three months ended March 31, 2021, were as follows: Changes in the Fair Value of Derivatives Pension and OPEB Cost Translation Adjustments Total Balance at December 31, 2020 $ (11.0 ) $ (178.5 ) $ 35.6 $ (153.9 ) Other comprehensive income (loss) before reclassifications 1.2 — (10.0 ) (8.8 ) Amounts reclassified from accumulated other comprehensive loss 1.3 1.1 — 2.4 Net change in accumulated other comprehensive loss 2.5 1.1 (10.0 ) (6.4 ) Balance at March 31, 2021 $ (8.5 ) $ (177.4 ) $ 25.6 $ (160.3 ) Accumulated other comprehensive loss by component as of December 31, 2019 and March 31, 2020, and changes during the three months ended March 31, 2020, were as follows: Changes in the Fair Value of Derivatives Pension and OPEB Cost Translation Adjustments Total Balance at December 31, 2019 $ 1.0 $ (185.7 ) $ 8.5 $ (176.2 ) Other comprehensive loss before reclassifications (11.8 ) — (19.8 ) (31.6 ) Amounts reclassified from accumulated other comprehensive loss (0.2 ) 0.8 — 0.6 Net change in accumulated other comprehensive loss (12.0 ) 0.8 (19.8 ) (31.0 ) Balance at March 31, 2020 $ (11.0 ) $ (184.9 ) $ (11.3 ) $ (207.2 ) |
Reclassifications from Accumulated Other Comprehensive Loss | Reclassifications from accumulated other comprehensive loss for the three months ended March 31, 2021 and 2020 were as follows: Three Months Ended March 31, Classification in the Condensed 2021 2020 Consolidated Statements of Operations Amortization of pension and OPEB cost: Net actuarial loss $ 2.8 $ 1.6 Investment and other income-net Net prior service credit (1.4 ) (0.6 ) Investment and other income-net Reclassifications before tax 1.4 1.0 Income tax expense 0.3 0.2 Reclassification, net of tax $ 1.1 $ 0.8 Derivatives: Net realized income (loss) $ 1.3 $ (0.2 ) Interest expense-net Reclassification, net of tax 1.3 (0.2 ) Total reclassifications, net of tax $ 2.4 $ 0.6 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | We have disclosed income (loss) from operations as the primary measure of segment earnings (loss). This is the measure of profitability used by our chief operating decision-maker and is most consistent with the presentation of profitability reported within the Condensed Consolidated Financial Statements. Three Months Ended March 31, 2021 Assets of Income (Loss) Depreciation Operations Total Intersegment Net from and Capital As of Sales Sales Sales Operations Amortization Expenditures March 31, 2021 Business Services $ 936.0 $ (13.9 ) $ 922.1 $ 53.2 $ 23.0 $ 7.8 $ 2,157.0 Marketing Solutions 255.6 (4.6 ) 251.0 13.8 8.0 3.0 627.6 Total operating segments 1,191.6 (18.5 ) 1,173.1 67.0 31.0 10.8 2,784.6 Corporate — — — (41.9 ) 2.8 2.2 195.8 Total operations $ 1,191.6 $ (18.5 ) $ 1,173.1 $ 25.1 $ 33.8 $ 13.0 $ 2,980.4 Three Months Ended March 31, 2020 Assets of Income (Loss) Depreciation Operations Total Intersegment Net from and Capital As of Sales Sales Sales Operations Amortization Expenditures December 31, 2020 Business Services $ 906.5 $ (13.4 ) $ 893.1 $ 37.7 $ 24.4 $ 10.7 $ 2,220.9 Marketing Solutions 330.4 (6.6 ) 323.8 24.9 14.2 1.6 674.3 Total operating segments 1,236.9 (20.0 ) 1,216.9 62.6 38.6 12.3 2,895.2 Corporate — — — (29.5 ) 0.6 5.4 235.7 Total operations $ 1,236.9 $ (20.0 ) $ 1,216.9 $ 33.1 $ 39.2 $ 17.7 $ 3,130.9 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt at March 31, 2021 and December 31, 2020 consisted of the following: March 31, 2021 December 31, 2020 8.875% debentures due April 15, 2021 $ 55.6 $ 55.6 7.000% notes due February 15, 2022 79.3 79.3 6.500% notes due November 15, 2023 75.0 75.0 Term Loan due January 15, 2024 (a) 534.7 535.8 6.000% notes due April 1, 2024 61.7 61.7 8.250% notes due July 1, 2027 245.8 245.8 6.625% debentures due April 15, 2029 103.4 103.4 8.500% notes due April 15, 2029 302.1 301.6 8.820% debentures due April 15, 2031 54.5 54.5 Unamortized debt issuance costs (9.0 ) (9.6 ) Total debt 1,503.1 1,503.1 Less: current portion 140.4 61.1 Long-term debt $ 1,362.7 $ 1,442.0 (a) As of March 31, 2021 and December 31, 2020, the interest rate on the Term Loan due January 15, 2024 was 5.11% and 5.15%, respectively. |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Financial Instruments | As of March 31, 2021 Classification on Consolidated Balance Sheets March 31, 2021 December 31, 2020 Derivative assets Foreign currency contracts: Not designated as hedging instruments Prepaid expenses and other current assets $ 0.3 $ 5.9 Derivative liabilities Foreign currency contracts: Not designated as hedging instruments Accrued liabilities and other $ 3.5 $ 2.3 Interest rate swap agreements: Designated as cash flow hedges Accrued liabilities and other 5.0 5.0 Designated as cash flow hedges Other noncurrent liabilities 6.2 9.6 |
Schedule of Pre-Tax Losses (Gains) Recognized on Derivative Financial Instruments in Condensed Consolidated Statements of Operations | The pre-tax losses (gains) recognized on derivative financial instruments in the Condensed Three Months Ended March 31, Classification of Loss (Gain) Recognized in the Consolidated Statements of Operations 2021 2020 Derivatives not designated as hedges Foreign currency contracts Selling, general and administrative expenses $ 2.4 $ 1.2 Derivatives designated as cash flow hedges Interest rate swap agreements Interest expense, net 1.3 (0.2 ) |
Schedule of Pre-Tax (Gains) Losses Recognized on Derivative Financial Instruments in Condensed Consolidated Statements of Comprehensive Loss | The pre-tax (gains) losses recognized on derivative financial instruments in the Condensed Three Months Ended March 31, 2021 2020 Derivatives designated as cash flow hedges Interest rate swap agreements $ (2.1 ) $ 15.5 |
Basis of Presentation - Reconci
Basis of Presentation - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Cash and cash equivalents | $ 261.6 | $ 288.8 |
Restricted cash - current | $ 52.8 | $ 62.6 |
Restricted Cash, Current, Asset, Statement of Financial Position [Extensible List] | Prepaid expenses and other current assets | Prepaid expenses and other current assets |
Restricted cash - noncurrent | $ 6.2 | $ 6.2 |
Restricted Cash, Noncurrent, Asset, Statement of Financial Position [Extensible List] | Other noncurrent assets | Other noncurrent assets |
Total cash, cash equivalents and restricted cash | $ 320.6 | $ 357.6 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Cash payments for income taxes | $ 9.8 | $ 8.5 | |
Cash refunds for income taxes | 0.5 | $ 2.4 | |
Prepaid Expenses and Other Current Assets | |||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Income taxes receivable | $ 19.6 | $ 16.3 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Detail) - Logistics - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Nov. 03, 2020 | Nov. 02, 2020 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Net sales | $ 12.2 | ||
Goodwill impairment | 20.6 | ||
Business Services | Disposition by Sale | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Net sales | $ 204.9 | ||
Business Services | Disposition by Sale | DLS Worldwide | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Cash on disposition of business | $ 225 | ||
Escrow deposit | $ 22.5 | ||
Business Services | Disposition by Sale | International Logistics | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Cash on disposition of business | $ 13 |
Discontinued Operations - Resul
Discontinued Operations - Results of Discontinued Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Net income (loss) from discontinued operations (Note 2) | $ 0.6 | $ (19.9) |
Logistics | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Net sales | 12.2 | |
Business Services | Disposition by Sale | Logistics | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Net sales | 204.9 | |
Cost of sales | (179.4) | |
Selling, general, administrative and other operating expenses | (20.8) | |
Restructuring, impairment and other expense | (20.7) | |
Operating loss from discontinued operations | (16) | |
Income tax benefit | 1.1 | |
Net income (loss) from discontinued operations (Note 2) | $ (14.9) |
Revenue Recognition - Net Sales
Revenue Recognition - Net Sales Disaggregated by Products and Services (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Total net sales | $ 1,173.1 | $ 1,216.9 |
Commercial Print | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 336.5 | 363.4 |
Packaging | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 174.4 | 115.1 |
Direct Marketing | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 130.9 | 182.8 |
Labels | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 128.7 | 121.6 |
Digital Print and Fulfillment | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 97.5 | 113.6 |
Statements | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 118.5 | 126.9 |
Supply Chain Management | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 72.7 | 69.7 |
Forms | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 48.8 | 52.4 |
Business Process Outsourcing | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | 42.5 | 44 |
Digital and Creative Solutions | ||
Disaggregation Of Revenue [Line Items] | ||
Total net sales | $ 22.6 | $ 27.4 |
Revenue Recognition - Contract
Revenue Recognition - Contract Liabilities from Contracts with Clients (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Revenue From Contract With Customer [Abstract] | ||
Contract Liabilities, Short-Term | $ 17.6 | $ 15.6 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Accounting Standards Update 2014-09 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue recognized from deferred revenue | $ 8.8 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Net [Abstract] | ||
Raw materials and manufacturing supplies | $ 149.2 | $ 147.3 |
Work in process | 63.4 | 64.8 |
Finished goods | 106.1 | 107.9 |
LIFO reserve | (17.9) | (17.9) |
Total inventories | $ 300.8 | $ 302.1 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Abstract] | ||
Land | $ 38.2 | $ 38.2 |
Buildings | 360.7 | 361 |
Machinery and equipment | 1,691.6 | 1,703.1 |
Property, plant and equipment, gross | 2,090.5 | 2,102.3 |
Less: Accumulated depreciation | (1,660.6) | (1,663.5) |
Total property, plant and equipment-net | $ 429.9 | $ 438.8 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 23.4 | $ 28.2 |
Building and related land sales, non-refundable deposit received | 123.3 | |
Gross proceeds expected from sale including non-refundable deposits | $ 250 | |
Entitled to retain percentage of purchase price in liquidation damages | 30.00% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Carrying Value of Goodwill by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Goodwill gross | $ 2,592.6 | $ 2,595.6 |
Accumulated impairment losses | (2,185.2) | (2,185) |
Goodwill | 407.4 | 410.6 |
Foreign exchange | (3.2) | |
Business Services | ||
Goodwill [Line Items] | ||
Goodwill gross | 2,073.1 | 2,076.1 |
Accumulated impairment losses | (1,931.1) | (1,930.9) |
Goodwill | 142 | 145.2 |
Foreign exchange | (3.2) | |
Marketing Solutions | ||
Goodwill [Line Items] | ||
Goodwill gross | 519.5 | 519.5 |
Accumulated impairment losses | (254.1) | (254.1) |
Goodwill | $ 265.4 | $ 265.4 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | $ 467.5 | $ 471.3 |
Accumulated Amortization, total other intangible assets | (403.5) | (402.5) |
Net Book Value, total other intangible assets | 64 | 68.8 |
Client Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | 413.5 | 417 |
Accumulated Amortization, total other intangible assets | (361.8) | (361.1) |
Net Book Value, total other intangible assets | 51.7 | 55.9 |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | 28.8 | 29.1 |
Accumulated Amortization, total other intangible assets | (16.5) | (16.2) |
Net Book Value, total other intangible assets | 12.3 | 12.9 |
Trademarks, Licenses and Agreements | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | 23.2 | 23.2 |
Accumulated Amortization, total other intangible assets | (23.2) | (23.2) |
Patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount, total other intangible assets | 2 | 2 |
Accumulated Amortization, total other intangible assets | $ (2) | $ (2) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense for other intangible assets | $ 4.7 | $ 4.9 |
Restructuring, Impairment and_3
Restructuring, Impairment and Other - Schedule of Net Restructuring, Impairment and Other Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||
Employee Terminations | $ 1.5 | $ 8.1 |
Other Restructuring Charges | 4 | 4.1 |
Multi-Employer Pension Plan Charges | (0.1) | 0.7 |
Impairment and Other | 0.4 | (1.7) |
Total | 5.8 | 11.2 |
Total Operating Segments | Business Services | ||
Restructuring Cost And Reserve [Line Items] | ||
Employee Terminations | 0.8 | 5.8 |
Other Restructuring Charges | 1.6 | 1 |
Multi-Employer Pension Plan Charges | 0.6 | 0.6 |
Impairment and Other | 0.4 | (1.7) |
Total | 3.4 | 5.7 |
Total Operating Segments | Marketing Solutions | ||
Restructuring Cost And Reserve [Line Items] | ||
Employee Terminations | 0.3 | 0.4 |
Other Restructuring Charges | 1.8 | |
Multi-Employer Pension Plan Charges | 0.1 | 0.1 |
Total | 2.2 | 0.5 |
Corporate | ||
Restructuring Cost And Reserve [Line Items] | ||
Employee Terminations | 0.4 | 1.9 |
Other Restructuring Charges | 0.6 | 3.1 |
Multi-Employer Pension Plan Charges | (0.8) | |
Total | $ 0.2 | $ 5 |
Restructuring, Impairment and_4
Restructuring, Impairment and Other - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring And Related Activities [Abstract] | ||
Employee termination costs | $ 1.5 | $ 8.1 |
Other restructuring charges | $ 4 | 4.1 |
Gain on sale of previously impaired assets | $ 1.7 |
Restructuring, Impairment and_5
Restructuring, Impairment and Other - Schedule of Changes in the Restructuring and MEPP Reserves (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Balance at the beginning | $ 88.6 |
Restructuring and Other Charges | 5.4 |
Foreign Exchange and Other | 0.3 |
Cash Paid | (12.3) |
Balance at the end | 82 |
Employee terminations | |
Restructuring Cost And Reserve [Line Items] | |
Balance at the beginning | 6.2 |
Restructuring and Other Charges | 1.5 |
Foreign Exchange and Other | 0.1 |
Cash Paid | (2.6) |
Balance at the end | 5.2 |
Other | |
Restructuring Cost And Reserve [Line Items] | |
Balance at the beginning | 12.2 |
Restructuring and Other Charges | 4 |
Foreign Exchange and Other | 0.2 |
Cash Paid | (4.3) |
Balance at the end | 12.1 |
MEPP withdrawal obligations | |
Restructuring Cost And Reserve [Line Items] | |
Balance at the beginning | 70.2 |
Restructuring and Other Charges | (0.1) |
Cash Paid | (5.4) |
Balance at the end | $ 64.7 |
Restructuring, Impairment and_6
Restructuring, Impairment and Other - Restructuring and Multiemployer Pension Plan ("MEPP") Reserves - Narrative (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Restructuring Cost And Reserve [Line Items] | ||
Current restructuring reserve (included in accrued liabilities and other) | $ 35.9 | |
Noncurrent restructuring reserve (included in noncurrent liabilities) | 46.1 | |
Accrued liabilities and other | 331.3 | $ 351.2 |
Other noncurrent liabilities | 256.9 | $ 272 |
MEPP withdrawal obligations related to facility closures | ||
Restructuring Cost And Reserve [Line Items] | ||
Accrued liabilities and other | 21.6 | |
Other noncurrent liabilities | $ 43.1 |
Retirement Plans - Components o
Retirement Plans - Components of Net Pension and Other Postretirement Benefit Plan (OPEB) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Pension income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0.3 | $ 0.3 |
Interest cost | 5.1 | 6.9 |
Expected return on plan assets | (9.5) | (10.2) |
Amortization, net | 2.9 | 2.5 |
Net pension income | (1.2) | (0.5) |
OPEB income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 1.1 | 1.8 |
Expected return on plan assets | (3) | (3.2) |
Amortization, net | (1.5) | (1.5) |
Net pension income | $ (3.4) | $ (2.9) |
Retirement Plans - Narrative (D
Retirement Plans - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | ||
Contribution to retirement plans | $ 1.9 | $ 4 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share and cash based compensation | $ 6.8 | $ 0.3 | |
Restricted stock units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Annual share-based compensation grants | 0.8 | ||
Grant date fair value | $ 4.52 | ||
Graded vesting period | 3 years | ||
Dividend payable | $ 0 | $ 0 | |
Performance share units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Annual share-based compensation grants | 0.8 | ||
Grant date fair value | $ 4.52 | ||
Cliff vesting period | 3 years | ||
Phantom restricted stock units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Annual share-based compensation grants | 0.9 | ||
Grant date share price | $ 4.52 | $ 4.52 | |
Payment description | payable in three equal installments over a period of three years after the grant date | ||
Payment term | 3 years | ||
Phantom performance stock units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Annual share-based compensation grants | 0.9 | ||
Cliff vesting period | 3 years | ||
Grant date share price | $ 4.52 | $ 4.52 | |
Phantom stock units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend payable | $ 0 | $ 0 |
Equity - Schedule of Equity Act
Equity - Schedule of Equity Activity (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Line Items] | ||
Beginning Balance | $ (243.8) | $ (370.3) |
Net (loss) income | (1.1) | (12.9) |
Other comprehensive (loss) income | (6.6) | (31.2) |
Share-based compensation | 0.2 | 1.4 |
Issuance of share-based awards, net of withholdings and other | (2.4) | (0.5) |
Cash dividends paid | $ (2.1) | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |
Distributions to noncontrolling interests | (0.7) | $ (0.7) |
Ending Balance | (254.4) | (416.6) |
Cumulative Effect, Period of Adoption, Adjustment | ||
Equity [Line Items] | ||
Beginning Balance | (0.3) | |
Common Stock | ||
Equity [Line Items] | ||
Beginning Balance | 0.9 | 0.9 |
Ending Balance | 0.9 | 0.9 |
Additional Paid-in Capital | ||
Equity [Line Items] | ||
Beginning Balance | 3,263.6 | 3,348 |
Share-based compensation | 0.2 | 1.4 |
Issuance of share-based awards, net of withholdings and other | (158.4) | (82.3) |
Ending Balance | 3,105.4 | 3,267.1 |
Treasury Stock | ||
Equity [Line Items] | ||
Beginning Balance | (1,127.6) | (1,219.6) |
Issuance of share-based awards, net of withholdings and other | 156 | 81.8 |
Ending Balance | (971.6) | (1,137.8) |
Accumulated Deficit | ||
Equity [Line Items] | ||
Beginning Balance | (2,240.7) | (2,336.8) |
Net (loss) income | (1.3) | (13) |
Cash dividends paid | (2.1) | |
Ending Balance | (2,242) | (2,352.2) |
Accumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment | ||
Equity [Line Items] | ||
Beginning Balance | (0.3) | |
Accumulated Other Comprehensive Loss | ||
Equity [Line Items] | ||
Beginning Balance | (153.9) | (176.2) |
Other comprehensive (loss) income | (6.4) | (31) |
Ending Balance | (160.3) | (207.2) |
RRD Stockholders' Equity | ||
Equity [Line Items] | ||
Beginning Balance | (257.7) | (383.7) |
Net (loss) income | (1.3) | (13) |
Other comprehensive (loss) income | (6.4) | (31) |
Share-based compensation | 0.2 | 1.4 |
Issuance of share-based awards, net of withholdings and other | (2.4) | (0.5) |
Cash dividends paid | (2.1) | |
Ending Balance | (267.6) | (429.2) |
RRD Stockholders' Equity | Cumulative Effect, Period of Adoption, Adjustment | ||
Equity [Line Items] | ||
Beginning Balance | (0.3) | |
Noncontrolling Interests | ||
Equity [Line Items] | ||
Beginning Balance | 13.9 | 13.4 |
Net (loss) income | 0.2 | 0.1 |
Other comprehensive (loss) income | (0.2) | (0.2) |
Distributions to noncontrolling interests | (0.7) | (0.7) |
Ending Balance | $ 13.2 | $ 12.6 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Detail) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Treasury stock, shares acquired | 0 | 0 |
Earnings per Share - Earnings p
Earnings per Share - Earnings per Share Reconciliation (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Basic and diluted net (loss) earnings per share attributable to RRD common stockholders: | ||
Continuing Operations | $ (0.03) | $ 0.10 |
Discontinued Operations | 0.01 | (0.28) |
Net loss attributable to RR Donnelley stockholders | $ (0.02) | $ (0.18) |
Net (loss) earnings attributable to RRD common stockholders - continuing operations | $ (1.9) | $ 6.9 |
Net earnings (loss) from discontinued operations, net of income taxes | 0.6 | (19.9) |
Net loss attributable to RRD common stockholders | $ (1.3) | $ (13) |
Weighted average number of common shares outstanding - Basic and Diluted | 72.7 | 71.6 |
Weighted average number of anti-dilutive share-based awards: | ||
Weighted average antidilutive securities excluded from computation of earnings per share | 1.1 | 1.4 |
Dividends declared per common share | $ 0.03 | |
Stock options | ||
Weighted average number of anti-dilutive share-based awards: | ||
Weighted average antidilutive securities excluded from computation of earnings per share | 0.3 | 0.4 |
Restricted stock units | ||
Weighted average number of anti-dilutive share-based awards: | ||
Weighted average antidilutive securities excluded from computation of earnings per share | 0.8 | 1 |
Other Comprehensive Loss - Sche
Other Comprehensive Loss - Schedule of Components of Other Comprehensive Loss and Income Tax Expense (Benefit) Allocated to Each Component (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive (loss) income, Before Tax Amount | $ (5.4) | $ (34.7) |
Other comprehensive (loss) income, Income Tax | 1.2 | (3.5) |
Other comprehensive loss | (6.6) | (31.2) |
Translation adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive (loss) income, Before Tax Amount | (10.2) | (20) |
Other comprehensive loss | (10.2) | (20) |
Adjustments for net periodic pension and OPEB cost | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive (loss) income, Before Tax Amount | 1.4 | 1 |
Other comprehensive (loss) income, Income Tax | 0.3 | 0.2 |
Other comprehensive loss | 1.1 | 0.8 |
Changes in Fair Value of Derivatives | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other comprehensive (loss) income, Before Tax Amount | 3.4 | (15.7) |
Other comprehensive (loss) income, Income Tax | 0.9 | (3.7) |
Other comprehensive loss | $ 2.5 | $ (12) |
Other Comprehensive Loss - Sc_2
Other Comprehensive Loss - Schedule of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ (243.8) | $ (370.3) |
Amounts reclassified from accumulated other comprehensive loss | 2.4 | 0.6 |
Other comprehensive loss | (6.6) | (31.2) |
Ending Balance | (254.4) | (416.6) |
Changes in Fair Value of Derivatives | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (11) | 1 |
Other comprehensive income (loss) before reclassifications | 1.2 | (11.8) |
Amounts reclassified from accumulated other comprehensive loss | 1.3 | (0.2) |
Other comprehensive loss | 2.5 | (12) |
Ending Balance | (8.5) | (11) |
Pension and OPEB Cost | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (178.5) | (185.7) |
Amounts reclassified from accumulated other comprehensive loss | 1.1 | 0.8 |
Other comprehensive loss | 1.1 | 0.8 |
Ending Balance | (177.4) | (184.9) |
Translation Adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 35.6 | 8.5 |
Other comprehensive income (loss) before reclassifications | (10) | (19.8) |
Other comprehensive loss | (10) | (19.8) |
Ending Balance | 25.6 | (11.3) |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (153.9) | (176.2) |
Other comprehensive income (loss) before reclassifications | (8.8) | (31.6) |
Amounts reclassified from accumulated other comprehensive loss | 2.4 | 0.6 |
Other comprehensive loss | (6.4) | (31) |
Ending Balance | $ (160.3) | $ (207.2) |
Other Comprehensive Loss - Sc_3
Other Comprehensive Loss - Schedule of Reclassification from Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification, net of tax | $ 2.4 | $ 0.6 |
Net Actuarial Loss | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Investment and other income-net | 2.8 | 1.6 |
Net Prior Service Credit | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Investment and other income-net | (1.4) | (0.6) |
Amortization of Pension and OPEB Cost | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications before tax | 1.4 | 1 |
Income tax expense | 0.3 | 0.2 |
Reclassification, net of tax | 1.1 | 0.8 |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassification, net of tax | 1.3 | (0.2) |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | Reclassification out of Accumulated Other Comprehensive Income | Net Realized Income (Loss) on Derivatives | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized income (loss) | $ 1.3 | $ (0.2) |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total net sales | $ 1,173.1 | $ 1,216.9 | |
Income (Loss) from Operations | 25.1 | 33.1 | |
Depreciation and amortization | 33.8 | 39.2 | |
Capital Expenditures | 13 | 17.7 | |
Assets of Operations | 2,980.4 | $ 3,130.9 | |
Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 33.8 | 39.2 | |
Capital Expenditures | 13 | 17.7 | |
Assets of Operations | 2,980.4 | 3,130.9 | |
Total Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 1,191.6 | 1,236.9 | |
Income (Loss) from Operations | 67 | 62.6 | |
Total Operating Segments | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 31 | 38.6 | |
Capital Expenditures | 10.8 | 12.3 | |
Assets of Operations | 2,784.6 | 2,895.2 | |
Intersegment Sales | |||
Segment Reporting Information [Line Items] | |||
Total net sales | (18.5) | (20) | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Income (Loss) from Operations | (41.9) | (29.5) | |
Corporate | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 2.8 | 0.6 | |
Capital Expenditures | 2.2 | 5.4 | |
Assets of Operations | 195.8 | 235.7 | |
Business Services | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 922.1 | 893.1 | |
Business Services | Total Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 936 | 906.5 | |
Income (Loss) from Operations | 53.2 | 37.7 | |
Business Services | Total Operating Segments | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 23 | 24.4 | |
Capital Expenditures | 7.8 | 10.7 | |
Assets of Operations | 2,157 | 2,220.9 | |
Business Services | Intersegment Sales | |||
Segment Reporting Information [Line Items] | |||
Total net sales | (13.9) | (13.4) | |
Marketing Solutions | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 251 | 323.8 | |
Marketing Solutions | Total Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total net sales | 255.6 | 330.4 | |
Income (Loss) from Operations | 13.8 | 24.9 | |
Marketing Solutions | Total Operating Segments | Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 8 | 14.2 | |
Capital Expenditures | 3 | 1.6 | |
Assets of Operations | 627.6 | $ 674.3 | |
Marketing Solutions | Intersegment Sales | |||
Segment Reporting Information [Line Items] | |||
Total net sales | $ (4.6) | $ (6.6) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2021USD ($) | Mar. 31, 2021USD ($)Facility | Dec. 31, 2020USD ($) | |
Commitment And Contingencies [Line Items] | |||
Number of sites cited as potentially responsible party | Facility | 4 | ||
Number of previously and currently owned sites with potential remediation obligations | Facility | 6 | ||
Gain on settlement of multiemployer pension plan obligation | $ 1.7 | ||
Subsequent Event | |||
Commitment And Contingencies [Line Items] | |||
Multi employer plan pension plan obligation settlement payment | $ 9.2 | ||
Donnelley Financial Solutions, Inc. | |||
Commitment And Contingencies [Line Items] | |||
Potential contingent obligations | 2.3 | ||
LSC Communications, Inc. | |||
Commitment And Contingencies [Line Items] | |||
Potential contingent obligations | 43.4 | ||
Multi-employer pension plan obligation | $ 100 | ||
Multi-employer pension plan obligation payment period | 13 years | ||
Multi-employer pension plan, present value of estimated future payments | $ 37.1 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ (9) | $ (9.6) | |
Total debt | 1,503.1 | 1,503.1 | |
Less: current portion | 140.4 | 61.1 | |
Long-term debt | 1,362.7 | 1,442 | |
Term Loan Due January 15, 2024 | |||
Debt Instrument [Line Items] | |||
Credit facility/Term loan | [1] | 534.7 | 535.8 |
8.875% Debentures Due April 15, 2021 | |||
Debt Instrument [Line Items] | |||
Debentures | 55.6 | 55.6 | |
7.000% Notes Due February 15, 2022 | |||
Debt Instrument [Line Items] | |||
Notes | 79.3 | 79.3 | |
6.500% Notes Due November 15, 2023 | |||
Debt Instrument [Line Items] | |||
Notes | 75 | 75 | |
6.000% Notes Due April 1, 2024 | |||
Debt Instrument [Line Items] | |||
Notes | 61.7 | 61.7 | |
8.250% Notes Due July 1, 2027 | |||
Debt Instrument [Line Items] | |||
Notes | 245.8 | 245.8 | |
6.625% Debentures Due April 15, 2029 | |||
Debt Instrument [Line Items] | |||
Debentures | 103.4 | 103.4 | |
8.500% Notes Due April 15, 2029 | |||
Debt Instrument [Line Items] | |||
Notes | 302.1 | 301.6 | |
8.820% Debentures Due April 15, 2031 | |||
Debt Instrument [Line Items] | |||
Debentures | $ 54.5 | $ 54.5 | |
[1] | As of March 31, 2021 and December 31, 2020, the interest rate on the Term Loan due January 15, 2024 was 5.11% and 5.15%, respectively. |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Detail) - Term Loan Due January 15, 2024 | Oct. 15, 2018 | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Maturity date | Jan. 15, 2024 | Jan. 15, 2024 | Jan. 15, 2024 |
Interest rate | 5.11% | 5.15% |
Debt - Narrative (Detail)
Debt - Narrative (Detail) - USD ($) | Apr. 28, 2021 | Apr. 16, 2021 | Apr. 15, 2021 | Oct. 15, 2018 | Sep. 29, 2017 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||||||
Amount of difference between fair value and book value | $ 170,600,000 | $ 142,900,000 | ||||||
Repayment of debentures | 1,400,000 | $ 58,700,000 | ||||||
Interest paid, net of interest capitalized | 22,900,000 | 23,500,000 | ||||||
Interest income from investments/other | 400,000 | $ 500,000 | ||||||
Subsequent Event | 8.875% Debentures Due April 15, 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of debentures | $ 55,600,000 | |||||||
Subsequent Event | 6.125% Senior Secured Notes Due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Nov. 1, 2026 | |||||||
Debt instrument, aggregate principal amount | $ 400,000,000 | |||||||
Principal payments term | semi-annually | |||||||
ABL Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 800,000,000 | |||||||
Maturity date | Sep. 29, 2022 | |||||||
Line of credit borrowing capacity description | The amount available to be borrowed under the ABL Credit Facility is equal to the lesser of (a) $650.0 million ($800.0 million as of March 31, 2021) and (b) a borrowing base formula based on the amount of accounts receivable, inventory, machinery, equipment and, if we were to so elect in the future subject to the satisfaction of certain conditions, fee-owned real estate of ours and our material domestic subsidiaries, subject to certain eligibility criteria and advance rates (collectively, the “Borrowing Base”). The aggregate amount of real estate, machinery and equipment that can be included in the Borrowing Base formula is limited to $175.0 million. | |||||||
Line of Credit Facility, Maximum Borrowing Base Capacity | $ 175,000,000 | |||||||
Borrowing capacity available under credit agreement | $ 512,000,000 | |||||||
Weighted average interest rate on borrowings | 1.60% | 2.70% | ||||||
Credit facility outstanding borrowing capacity | $ 0 | $ 0 | ||||||
ABL Credit Facility | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed charge coverage ratio | 1 | |||||||
ABL Credit Facility | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Unused line fee | 0.25% | |||||||
ABL Credit Facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Unused line fee | 0.375% | |||||||
ABL Credit Facility | Eurocurrency | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 800,000,000 | |||||||
ABL Credit Facility | Eurocurrency | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 1.25% | |||||||
ABL Credit Facility | Eurocurrency | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 1.75% | |||||||
ABL Credit Facility | Base Rate | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 0.25% | |||||||
ABL Credit Facility | Base Rate | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 0.75% | |||||||
ABL Credit Facility | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 650,000,000 | |||||||
Maturity date | Apr. 16, 2026 | |||||||
ABL Credit Facility | Subsequent Event | Eurocurrency | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility maximum borrowing capacity | $ 650,000,000 | |||||||
Term Loan Credit Agreement | Senior Secured Term Loan B | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, aggregate principal amount | $ 550,000,000 | |||||||
Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Jan. 15, 2024 | Jan. 15, 2024 | Jan. 15, 2024 | |||||
Principal payments | $ 1,400,000 | |||||||
Principal payments term | quarterly | |||||||
Term Loan | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 4.00% | |||||||
Term Loan | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate margin on borrowings | 5.00% |
Derivatives - Narrative (Detail
Derivatives - Narrative (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Not Designated as Hedging Instrument | Foreign Currency Contracts | ||
Derivative [Line Items] | ||
Aggregate notional value | $ 363,300,000 | $ 220,700,000 |
Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative [Line Items] | ||
Aggregate notional value | $ 400,000,000 | |
Derivative instrument, interest rate description | LIBOR | |
Derivative instrument, maturity date | Jan. 15, 2024 | |
Designated as Hedging Instrument | Interest Rate Swap | Derivatives Designated as Cash Flow Hedges | ||
Derivative [Line Items] | ||
Aggregate notional value | $ 400,000,000 |
Derivatives - Schedule of Fair
Derivatives - Schedule of Fair Values of Derivative Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Not Designated as Hedging Instrument | Accrued Liabilities and Other | Foreign Currency Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | $ 3.5 | $ 2.3 |
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Foreign Currency Contracts | ||
Derivatives Fair Value [Line Items] | ||
Derivative assets | 0.3 | 5.9 |
Designated as Hedging Instrument | Derivatives Designated as Cash Flow Hedges | Accrued Liabilities and Other | Interest Rate Swap Agreements | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | 5 | 5 |
Designated as Hedging Instrument | Derivatives Designated as Cash Flow Hedges | Other Noncurrent Liabilities | Interest Rate Swap Agreements | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | $ 6.2 | $ 9.6 |
Derivatives - Schedule of Pre-T
Derivatives - Schedule of Pre-Tax Losses (Gains) Recognized on Derivative Financial Instruments in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Not Designated as Hedging Instrument | Foreign Currency Contracts | Selling, General and Administrative Expenses | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain related to derivatives | $ 2.4 | $ 1.2 |
Designated as Hedging Instrument | Derivatives Designated as Cash Flow Hedges | Interest Rate Swap Agreements | Interest Expense, Net | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain related to derivatives | $ 1.3 | $ (0.2) |
Derivatives - Schedule of Pre_2
Derivatives - Schedule of Pre-Tax (Gains) Losses Recognized on Derivative Financial Instruments in Condensed Consolidated Statements of Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivatives Designated as Cash Flow Hedges | Interest Rate Swap Agreements | ||
Derivatives Fair Value [Line Items] | ||
Pre-tax losses recognized on derivative financial instruments in consolidated statements of comprehensive loss | $ (2.1) | $ 15.5 |
New Accounting Pronouncements -
New Accounting Pronouncements - Narrative (Detail) - Accounting Standards Update 2019-12 | Mar. 31, 2021 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2021 |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |